Firelight launches DeFi insurance with $115M staked XRP on Flare network

Photo: Rostislav Uzunov / Pexels Firelight, a DeFi cover protocol incubated by Sentora, has launched insurance coverage backed by 50.2 million XRP staked on the Flare network. This development marks the introduction of a new utility for XRP within the DeFi ecosystem, as staked XRP is used to back coverage for risks such as smart-contract exploits and oracle failures. The total aggregate cap for staked XRP positions is set at $115 million. By leveraging XRP bridged as FXRP, Firelight adds an on-chain protection market to Flare, providing coverage for vaults like Sentora’s USD Protected Vault. Key Takeaways Firelight’s use of staked XRP for DeFi cover suggests increased utility and adoption of XRP. The aggregate cap for staked XRP positions is $115 million, indicating a significant commitment to backing coverage. This development appears to align with market sentiment supportive of a positive outcome for XRP’s long-term prospects. What to Watch Market participants will likely focus on how the introduction of DeFi insurance impacts XRP’s adoption and utility. Additionally, the reaction of key actors such as Ripple CEO Brad Garlinghouse and financial institutions like BlackRock and Fid...